2 Multiple equilibria Consider a 2-agent, 2-good economy with utility functions u1(.7;) = 3:1 + 100(1 eve/1), u2(x) = 110(1 e_$1/10)+ $2 and endowments el = (40, 0), e2 = (0, 50). Fix p2 = 1. 1. Find each agent's demand for each good as a function of p1. (Watch out for corner solutions!) For what values of p1 do both agents consume a positive quantity of both goods? 2. Plot 21(p1, 1), the excess demand curve for good 1, over the range of p1 for which both agents consume both goods. How many times does it hit zero? 3. Find the values of p1 at which 21(p1, 1) = 0. (You may do this numerically.) Calculate the corresponding allocation for each price. Without doing any further calculations, explain why each allocation and price constitute a competitive equilibrium